Mishra, Ritesh Kumar; Sharma, Chandan - In: International Journal of Monetary Economics and Finance 4 (2011) 1, pp. 95-109
After the collapse of Bretton-Woods system, it was believed that under flexible exchange rate system nominal exchange rate will adjust instantaneously to reflect movements in prices between two countries. Consequently, Purchasing Power Parity (PPP) will hold continuously. This study examines the...